The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-02-11
A BIG LAWSUIT.
John W. Shaw Sues Judge Stevenson Burke
and Others for Eight Million Dollars.

COLUMBUS, o. Feb IO-President John W.
Shaw, of the Columbus. Hooking Valley & To-
ledo railway, to-day sued Stevenson Burke. NJ
NJ Greene, Charles Hickox, Chas. H. Hickox,
William j. McKinnie. Chauncey Andrews, John
W. Ellis and the Ohio Central Railroad Com
pany and Judge Bingham granted an injunc-
ton restraining the defendants from selling
their stock and to compel them to account for
their Indebtedness to the company for both
stock and bonds, Shaw giving bond in 100000
for costs, with p W. Huntington and Walter
Crafts as sureties. The petition rectes that
prior to the consolidation of the three roads, in
1881, their combined capital was s., 1874 GOO. the
individual defendants also owning 10000 acres
of coal lands; shat prior to July, 1881, defend
ants and others entered into o fraudulent COM
bipation to possess the three roads without
the expenditure of any money, and TO
dispose of said lands at prices enormously above
their value. By threatening to build parallel
lines they secured the three roads-Hockiug
Valley at $75 per share, Columbus 81 Toledo at
$62. 80, and West Virginia at $42, and immedi
ately consolidated, with capital stock of $780,
100000, the defendants taking all stock then is
sued and the remainder going to the company.
Electing themselves directors on Sept. 10. they
! authorized $14 500, 900 in bonds and executed
mortgage therefor to the Central Trust Com
pany of New York; Sc, 500, 900 Of these bonds
! were held for exchange of outstanding bonds.
and $S.OO00OO to be sold for making double track
| and other improvements. On Nov. 2, 1881, &c.
| 400 900 of these bonds turned over to Ste
| venson Burke. without specification of purpose,
and later sale of $6.4li. 900 of these bonds to
| Winslow, Lanier e. Co, less commissions, was
| ratified, and the board directed President NJ. NJ.
| Greene to hand over to the executive committee,
| consisting of Greene, Burke, HickoX and Nc
| kiDnie, the remaining ], $50 Treasury bonds and
| take the receipt of the committee for the whole
and hox,i y1of< <ho adS
| of all bonds sold, and also of the unsold bonds.
they paid the advances made for the stock of the
| three companies and exchanged for consolidated
| stock taken in their own names thus approprl-
| ating the entire stock, for not dollar of which
they accounteaeto plaintiff; that meanwhile by
| agreement money advanced by Winsow, Lanier
| IL Co, AMI DreXel, Morgan & Co. for the pur-
chase of the three roads, repaid out of the
| proceeds of the consolidated bonds. defendants
thus getting possession OF plaintiffs stock with
out paying single dollar for il; that defendants
further to dvest plaintiff of title to said SIS. 000,
600 of bonds. and thus secure title we'll
| as bonds, on Aug. IA, 1882, as directors
| authorized President NJ Nj. Greene to purchase
| the entire stock of the Hooking Coal and Rail-
road Company for $S 000 000 in bonds of plant
| iff, said land not exceeding $500 900 in value
| and said purchase bonds, in fact, not being in
the treasury, and that. by declaring dividend
to themselves June II, 1885, of 13s per cent
the only asset left is the stock $500, 0O0 of the
| Hooking Coal and Railroad Company-stock on
which defendants now admit the company still
| owes 1874, 600. Plaintiff further sets.forth that
the stock exchanged for purchase of the Toledo
& Ohio Central is his; that there are outstand
ing three shares of original Columbus & Hook
| ing Valley stock. held by persons not cognizant
| of the unlawful acts of defendants
| The very volumnous petition is sworn to by
| John W. Shaw, with IL L. Terrell N Simpson,
| Thacker & Barnum, and Earnhart. Butler &
| Hunter as attorneys for plaintiff The case in
wolves SIS. 600, 900, and attracts much attention.